Hi, I have one query regarding the deduction of Professional Tax. Our company headquarters are in Bangalore, but we have people employed PAN India. My question here is, suppose a person is employed in Bikaner (For Rajasthan PT is 0), will he be eligible for PT deduction as the company is registered in Bangalore, or will the rules be applied as per his working location? Please help me out with this. If possible, attach supporting documents also.
From India, Bengaluru
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19From India, Bengaluru
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If the payroll is processing only from one area then you can pay PT asper karnataka State Government
From India, Pune
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From India, Pune
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You have to consider the nature of the job, role, and permanent work location. If your employees are working in a specific location like Chennai, Hyderabad, Kochi, Delhi, etc., permanently from your branch office in those locations, as per prevailing rules, you are supposed to get registered under Shops and Establishment Rules of concerned states. This further clarifies that these individuals are working in Corporation/Municipality areas of concerned states and not Bangalore. This leads to the payment of Professional Tax (PT) in respective states and not in Karnataka.
However, if your employee is working as a pre-sales officer, onsite engineer, or consultant who travels across cities based on customer requirements, and the permanent work location is Bangalore, then PT is payable in Bangalore only.
From India, Bangalore
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However, if your employee is working as a pre-sales officer, onsite engineer, or consultant who travels across cities based on customer requirements, and the permanent work location is Bangalore, then PT is payable in Bangalore only.
From India, Bangalore
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The Employee will be governed by the prevailing Acts,Rules, Regulations of his Place of Work.The Location of Company HEAD QURTERS has no relevance in determining Applicability of Profession Tax
From India, New Delhi
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From India, New Delhi
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As rightly said, the Professional Tax is location-specific. It has to be paid based on the slab rate applicable to the working location. It varies between Corporations, Municipality, Town Panchayat, etc. The deducting authorities have to adhere to the different slabs.
From India, Chennai
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From India, Chennai
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Is PT deducted as per the working location of the employee or the Hq of the organization?
From India, undefined
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From India, undefined
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Dear Anamika,
Application of PT will be guided by Employees' Place of Work/Posting. The application of PT has nothing to do with the organization's headquarters or registered office, etc. PT is state-specific legislation, and PT deducted will be remitted to the respective state.
From India, New Delhi
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Application of PT will be guided by Employees' Place of Work/Posting. The application of PT has nothing to do with the organization's headquarters or registered office, etc. PT is state-specific legislation, and PT deducted will be remitted to the respective state.
From India, New Delhi
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All organizations that have PAN in India employees face this question. If an employee is a resident/placed permanently in a state, then PT has to be deducted according to the state & location. Now, there are some states where registration under PT requires a Shop Act RC (or factory license). The organization may not have an office in the state, but without a Shops Act RC registration, under the Shops Act is not possible in some states. In such states, you need to find an organization having a Shops Act RC in that state. Explain the difficulty of PT RC. Get one to agree to share premises for the purpose & enter into a lease agreement. Now you legally have an office, you may apply for Shops Act RC & eventually PT RC in states where it is needed.
From India, Mumbai
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From India, Mumbai
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